Balaram Owens Buyer Book

OurCustom Approachto Home Buying

Financing

Interest rates are important, but there are other factors to consider when financing a home.

Consider the following when choosing your lender:

1) Knowledge and experience in the market you are buying

2) Responsiveness

3) Process for pre-qualification and obtaining a loan commitment

Lenders will use employment, credit, and financial information to form the estimate of a mortgage. They can also share different loan products which will break down different scenarios for mortgage payments & closing costs.

Checklist of points to discuss with your lender:

How much will the down payment be?

How to factor in a gift from a family member or friend?

Will the loan product approve closing cost credits from the Seller?

Other costs/fees to be factored?

Talk with your agent for a list of lender recommendations.

Financing

Sample Loan Estimate Documents TIP!

The type of loan you are receiving and the amount for the down payment may have an effect on the outcome of a potential offer you write on a property.

All Real Estate is Local

Be mindful that buying a home in DC, Maryland, or Virginia is different from other parts of the country. Local laws and customs can impact everything from drafting the contract to how to negotiate a home inspection.

Agents Write Contracts

In some parts of the country, attorneys have the ability to write the contract. In this area, the local real estate association drafts the forms and the brokerages use those forms to complete the contract. The ratified contract is legally binding. Remember to review your offer thoroughly before signing, and make sure nothing is omitted that’s important to you.

Earnest Money Deposits (“EMD”)

The amount of the deposit, also known as a “good faith deposit”, can vary based on the other terms of the offer. Generally, EMD’s range from 1-5% of the purchase price. That amount is then credited back to you at closing, thereby reducing the final amount due.

Property Fixtures

Fixtures are considered any personal property that is secured or installed in the property (i.e., a dishwasher or refrigerator). These fixtures often convey with the property per the terms of the contract. However, sometimes Sellers will opt to keep some of these items. It is important to read through the contract to see what is included or excluded.

Closing Costs

The cost to purchase a home can vary based on the jurisdiction and the loan program. It is important to speak with your lender and title company to review those costs. This should occur early in the process to educate yourself on how to read the loan estimate disclosure document that will be provided by your lender.

Settlement Date

A number of factors can affect the settlement date such as the type of loan, the sale of your current home, the seller’s ability to vacate, and when you will be ready to move. Be sure to work with your agent to weigh all of these varying factors when choosing a settlement date.

The Home Search

Essential Data Provided to Buyers

Data can help provide perspective to an otherwise emotionally charged process. We have access to current property and market information not readily available through typical consumer facing sites. Educating yourself with this data can be a useful barometer in the decision making process.

Days on Market

The longer a property sits on the market, the more likely there will be room for negotiation on price and terms. A Seller’s needs can also influence whether a property will sell quickly or slowly. A good Buyer agent will do their research (past sales history, whether owner occupied or rented, last renovation, etc.) and use this as a base for where to start negotiating.

Buyer Market vs. Seller Market

The more competition there is for a home, the stronger the offer must be to win. Seller’s often know how to use competing offers against each other to drive up the price or control the terms of the contract. The less competition, the more likely a Seller may compromise on material terms, including price.

What Does the List Price Tell Us?

Listing Agent

Seller’s ultimately determine the list price of their home, but be mindful that there can be strategy attached to a list price decision. Some price low to create a bidding war; others price high out of emotion. Market and property research will help reduce the influence of such a strategy and allow us to put the right offer forward.

What If I Can’t Find a Home I Like?

1) New listings are always coming on to the market.

2) Current listings can see price reductions or home upgrades to become more appealing.

3) Reaching out to properties in off market status may uncover a motivated seller.

4) Process of elimination: Learning what you don’t like helps reveal what you want. Knowing what you want is the key to finding and getting it.

Common Search Criteria Adjustments:

Type: Single family home, townhouse, condo or co-op? Maybe consider another type of home which still meets essential needs.

Location: Widening your search, even slightly, can often influence the results and add new homes to be viewed.

Size/Home Type: Going bigger or smaller can impact search results. Flexibility with regard to home size and construction style in your online search can increase results exponentially.

Proximity to Public Transit: How important is this to you? Is it necessary for you to commute to work? What options do you have when it comes to public transportation?

Price: Spending more or less can also influence the results. (i.e., sometimes finding a less expensive home with higher renovation costs can prove to be the winning solution).

Found the Home, Now What?

When you find a home and decide to make an offer, make sure to tell us first!

Take a look at our buyer’s agent checklist on next steps when preparing an offer:

Connect with the listing agent

Confirm that the property is still available

Find out when the Seller will review offers

Find out if other offers were rejected and why?

Find out what is important to the seller (i.e., settlement date, move out date)

Obtain seller disclosures, which include what does and does not convey with the property

The Purchase Offer

Offers are most well received when they are clean, organized, and complete. It’s our business to make sure that the offer meets all three of these criteria.

Offers Should Include The Following:

If using financing, always include a Lender Pre-Approval Letter

If paying cash, always provide proof of ability to pay (i.e., a bank statement)

A copy of the earnest money deposit (EMD) check

A summary of your offer terms

Remember: Whether we are operating in a Seller’s market or Buyer’s market, real estate deals are always influenced by the specific circumstances of both parties.

Negotiating

Negotiating begins with “hello” and ends when the title company has transferred the deed into your name.

We fully understand this and always have your best interest at heart. However, not all points of negotiation should be approached the same way.

When negotiating on your behalf, we balance your needs and desires with the main objectives you established at the beginning of this journey (i.e., owning the home). Good decision making can become clouded when emotions run high. It’s our job to help you maintain perspective so you can make the best decision possible.

Example: How to approach the conveyance of a $500 television set, while under contract on a $350,000 home.

“If you don’t know where you are going, you might wind up someplace else.” -Yogi Berra

Preparing for Closing

The contract includes the day of closing, but not the time. We schedule the time with the title company based on everyone’s schedule and their availability. Prior to closing, we will also have the opportunity to conduct a final walkthrough of the property to make sure nothing has changed.

Sample Closing Disclosures

Utilities: a few weeks before closing, please make sure to set up gas, electric, cable/ internet, & trash utilities in your name.

Working Together

Single Point of Contact

I represent you. As your representative, I am the best and most appropriate point of contact with the seller side. My job is to listen to your needs and communicate with the other side when appropriate. You should never be tasked with speaking with the other side unless we have spoken first.

Negotiation

When asking for something from the seller, it will generally be received more objectively when coming from the agent rather than the buyer.

Accessibility

It is important that we communicate regularly and in a format that meets both our needs. I am happy to customize communication to your preferred style, though sometimes we will need to modify this arrangement for the subject matter. Some conversations are better over the phone than text or email.

Closing & Beyond

When you walk into your home for the first time after settlement, it’s likely that your “to-do” list will start to grow. Merging your life with this new home is an exciting and sometimes daunting task. Don’t forget that I am a valuable resource and can be helpful in many ways. Let’s stay connected!

Recommended Vendors: It’s likely that when you need a vendor for your house, I’ll know who to call. Benefit from my experiences with the good, bad, and ugly of home ownership. I can help save you time and money in this new, exciting chapter of your life.

Home Trends & Market Data: It’s easy to remain invested in the ups and downs of home values after a purchase. However, your top priorities should be maximizing your experience in your new home. Don’t worry, I promise to keep you educated on what is happening in your neighborhood.

Files & Document Storage

Need paperwork from the transaction to share with your accountant? We are required to keep a record of your transaction, including important documents, for years following settlement.

Future Communication

In addition to checking in with you from time to time, I periodically send out information that I find interesting to my clients.

of all homes sold have agents on both sides of the transaction. Who you know matters, and we’re connected.

NATIONAL ASSOCIATION of REALTORS

About Balaram

Balaram is a residential real estate consultant in the Washington, DC Metro Area. Washington, DC real estate is his passion. A lifelong DC native, Balaram has perspective and a sense of pride as our region continues to grow. His background as a landlord, rehabber, and realtor has provided him with a greater level of expertise. Whether a buyer, seller, customer, or client, he has three key objectives – ADVISING, SERVING and NEGOTIATING to achieve YOUR Best Deal. The foundation of these three objectives is built on trust and teamwork.

About RLAH

Because transacting in home sales requires more work than any one person can do, RLAH stands behind the agent & helps with a multitude of tasks along the way. Through record breaking sales in 2019 and the best combination of involved leadership, accessibility, personalized support, education, and resources, RLAH works behind the scenes to make sure clients’ needs are met by empowering the Realtor.

About Berkshire Hathaway

Our connection with Berkshire Hathaway brings the strength of a large franchise to the flexibility and expertise of local ownership. RLAH Real Estate is a member of the largest real estate network in the world through Berkshire Hathaway Home Services of America.

Testimonials

According to the National Association of Realtors,

Please enjoy reading some reviews from happy past clients!

“Balaram is wonderful to work with. We live in California and needed to sell our condo in DC. We like to be very involved in the process and were concerned about not being in town to handle everything. Balaram took all anxiety away: he is incredibly knowledgeable, gave us terrific advice about timing, pricing, and of critical importance to us, he was so responsive to our texts and calls throughout the process. He picked up every cold call, and if not he would text right away to set a time to chat. When the condo needed a few items fixed/ repaired, he provided quotes for the jobs and handled the project. I highly recommend him for his knowledge, his connections, and his impeccable customer service.” - Yaniv Snir

“Balaram was amazing to work with. He put us in the home and the perfect neighborhood. He was so patient with us and was always available and communicative. We had a really great experience working with him.” - Leslie Albrecht

“Very passionate about getting you into the just the right house, he is patient and is very knowledgeable about the housing market in the DMV area, wonderful agent! A great asset to any buyer or seller.” - bnkiragu (Zillow)

“My wife and I were buying our new home after living in our current one for 18 years. So as you can imagine it was very bittersweet. Balaram was an awesome advisor throughout the process. The real estate market in the DC Metro Region is very competitive, and he helped us be strategic about our home search process. As a result, we found our future home quickly and closed within 30 days. It was an overall excellent experience and I highly recommend Balaram.”